If you are wondering whether Vestas Wind Systems is still attractively priced after its recent run, this article will help you unpack what the current share price might be implying about future expectations. The stock trades at DKK 176.4 after a 6.1% decline over the last 7 days and a 5.8% decline over the last 30 days, although the 1 year return sits at 65.9%. These moves come as Vestas continues to be a focal point in global wind power discussions, with investors paying close attention to project activity, policy support for renewables and sentiment across the wider wind turbine sector. Together, these factors help frame whether the recent pullback is being treated as profit taking after strong 1 year gains or a sign of shifting risk appetite. On our valuation checks, Vestas Wind Systems scores 3 out of 6 for being undervalued. You can see this in more detail in its valuation score. Next we look at how different valuation methods line up on the stock, before finishing with a broader way to think about what that valuation really means.
Approach 1: Vestas Wind Systems Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model estimates what a company might be worth today by projecting its future cash flows and then discounting those back into present value using a required return.
For Vestas Wind Systems, the model uses a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about €1.97b, and analysts have provided detailed projections out to 2030. For example, free cash flow projections include €1,258m in 2026 and €1,664m in 2030, with later years extrapolated by Simply Wall St beyond the explicit analyst horizon.
When all these projected cash flows are discounted back and summed, the DCF model arrives at an estimated intrinsic value of approximately DKK 215.51 per share. Compared with the current share price of DKK 176.40, the model implies an 18.1% discount, which points to Vestas Wind Systems trading below this DCF estimate.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Vestas Wind Systems is undervalued by 18.1%. Track this in your watchlist or portfolio, or discover 234 more high quality undervalued stocks.
VWS Discounted Cash Flow as at Feb 2026
Approach 2: Vestas Wind Systems Price vs Earnings
For a profitable company like Vestas Wind Systems, the P/E ratio is a useful way to think about what you are paying for each unit of current earnings. It connects the share price directly to the business’s ability to generate profit today.
What counts as a “normal” P/E depends on how the market views growth potential and risk. Higher expected growth or lower perceived risk can justify a higher multiple, while slower expected growth or higher risk usually lines up with a lower one.
Vestas currently trades on a P/E of about 25x. This sits below both the Electrical industry average of roughly 31x and the broader peer group average of around 80x. Simply Wall St also provides a proprietary “Fair Ratio” of 30.59x for Vestas. This Fair Ratio is designed to reflect a P/E that would be reasonable for the company given factors such as its earnings profile, industry, profit margins, market cap and specific risks.
Because the Fair Ratio incorporates these company specific inputs, it can be more informative than a simple comparison with peers or the industry on their own. With the current P/E at 25x versus a Fair Ratio of 30.59x, this framework points to Vestas trading below that fair multiple.
Result: UNDERVALUED
CPSE:VWS P/E Ratio as at Feb 2026
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Upgrade Your Decision Making: Choose your Vestas Wind Systems Narrative
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple tool on Simply Wall St’s Community page that lets you set out your own story for Vestas Wind Systems, connect that story to your assumptions for future revenue, earnings and margins, and see how those assumptions translate into a Fair Value that you can compare with the current price. This can help you decide if the stock looks appealing or stretched. The model automatically updates when fresh information such as news or earnings is added. One investor might build a Narrative around a more cautious view on policy support and project execution, while another builds a Narrative that assumes stronger long term project activity and higher profitability, leading to very different fair values, all based on each person’s clearly stated expectations.
Do you think there’s more to the story for Vestas Wind Systems? Head over to our Community to see what others are saying!
CPSE:VWS 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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